Ironically, as fitness and health food trends dominate in 2026, many Canadians are being forced to rely on fast food. Grocery prices are an ongoing issue for Canadians as it seems the price of everything from bus fare to passports are endlessly increasing.
Last Thursday, Canadian fast food chain A&W reported a national uptick in financial results, with annual sales hitting $1.92 billion. This is especially notable since Canadians have cut back on eating out to save money.
Stretching a dollar
According to A&W CEO, Susane Senecal, the hike in sales is largely due to the appeal of a discount and a deal. People appear to be making the the most of their purchases and seeing how much their dollar can get them.
“When people are suffering from affordability issues, they start looking for ways to economize. If fast food places can come out and say, ‘We’ll give you a burger, fries and a drink for five bucks,’ that’s going to catch people’s attention,” Concordia University economist Moshe Lander said.
In the final quarter of 2025, A&W’s sales increased by $14.6 million compared with this time last year. The math makes sense seeing as the chain released a Value Deals menu last year with many items costing less than $4. Customers have been all over it.
Restaurants Brands International is the parent company of fast food chains like Tim Hortons, Burger King, Popeyes and Firehouse Subs. It also reported significant increases in profits, reaching $113 million in the last quarter of 2025.
The big picture
In January, food inflation was around 4.8% in Canada and while restaurant inflation was much higher at 12.3%.
In the US, some fast food prices rose by 3.2 per cent year over year in 2025, which only pushed low-income consumers away from big chains.
Similar to A&W, McDonald’s released a McValue deals menu to regain the interest of low-income customers, which proved fruitful.
“We’ve seen traffic hold up pretty well with upper-income consumers and traffic has been pressured with lower-income consumers. And of course, lower-income consumers are more value and affordability sensitive,” McDonald’s CEO Christopher Kempczinski stated.
Stores like Dollarama also saw its stock surge last year.
The ‘downturn diet’
An unfortunate consequence of economic struggle is a healthy, balanced diet — especially for families.
“Unfortunately, diet is the first thing to go when you have to try and find ways to save money. And so that economy-size bag of Doritos is going to beat out fruits and vegetables,” Moshe Lander said.
“We’re not only seeing a downturn diet, but the interesting thing, too, is the way that shrinkflation has been changing people’s diets”.
Lander warns that the size of value meals at fast food restaurants could become victims of shrinkflation, making the portion sizes smaller and smaller.
“The fries are smaller in size or the burgers are a little bit thinner, the toppings are a bit less. Probably the same thing goes for the pop,” he said.
A familiar formula for food prices
Last week, Desjardins released a report showing that overall inflation has remained consistent at 2% but food inflation has increased.
In the report, Desjardins economist LJ Valencia stated: “Food inflation accelerated sharply after the pandemic. And while conditions briefly improved, food price growth picked up again in 2025”.
“After the COVID‑19 pandemic, food price growth accelerated at a pace not seen since the early 1980s. And more recently, food inflation has run hotter in Canada than it has south of the border”.
The recipe for higher prices include familiar ingredients: Demand outweighing supply, tariffs troubles, supply chain shake ups and climate change.
“If I’m hungry at two o’clock in the afternoon in the way that I didn’t used to be, and I need something to hold me over, I’m going to go to Dollarama to buy a cheap bag of chips,” he said.
While not everyone holds that sentiment, it makes sense that Canadians are depending on cheaper, lower quality food for sustenance.
Finding affordable options
Affordable, healthy food is harder to access in Canada right now. However, there are many companies and organizations fighting to bring produce and nutrient-dense food into Canadian’s homes for great price points!
Check out the following:
Oddbunch Canada: Works with farms, greenhouses, and distributors to save “odd” produce —fruits & vegetables that don’t meet grocery store cosmetic standards, yet are just as fresh and high quality.
Too Good to Go: Partners with local restaurants and businesses to source surplus food and offer it at 1/2 the price. Their goal is to fight food waste while offering great meals at affordable rates.
FoodMesh: A food recovery business that helps businesses divert unsalable food away from waste streams and onto the plates of people who need it. It both accepts and offers food donations.
What are some ways you eat well without breaking the bank? Let us know in the comments!
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